#SmallBizSatUK is tomorrow and there are many reasons why it’s so important not to ignore it! UK SMEs and small businesses are major contributor to the economy and also support local communities in a variety of ways. At Akoni we are of course major supporter of SMEs, but we want you to be too so here are 5 reasons why UK small businesses are vital for the UK economy.
- They create Jobs - SMEs and small businesses create account for a lot of jobs in communities. Total employment in SMEs was 16.3 million; 60% of all private sector employment in the UK. (source – FSB, 2018) This is important for both local economies in towns and cities as well as national economy.
- They add to GDP - UK family firms generate 25% of the total UK GDP (source - PWC, 2012) UK family firms generate 25% of the total UK GDP (source - PWC, 2012) The combined annual turnover of SMEs was £2.0 trillion, 52% of all private sector turnover. This shows how much monetary value the UK receives from the SME sector and overall how the economy benefits.
- They inspire innovation - Small businesses and startups positively contribute to the growth of innovation. (source – Market inspector, 2018) Disruptors in the tech space can spur innovations by creating new technology or processes to add more value to an industry. An example is how Akoni has used machine learning and automation to create a digital treasury platorm for SMEs giving them access to a cash management solution which previously would only have been available to larger firms, thus levelling the playing field in this industry.
- They boost to local communities - Many small businesses operate locally and employ from near their vicinity. Coffee shops and eateries provide locals with places to socialise while boutiques and other small shops allow people with low mobility to have easier access to essential commodities.
- They help you be more ethical - Going to your local business rather than ordering things online means a lower carbon footprint while clothes and other goods made locally can take the pressure of countries with a lot of industrial factories. It also ensures more ethical practices and that no loop holes in other countries were exploited.